Assets on the left side of the equation (debits) must stay in balance with liabilities and equity on the right side of the equation (credits). Before getting into the differences between debit vs. credit accounting, it’s important to understand that they actually work together. Expense accounts normally have debit balances, while income accounts have credit […]

This mechanism is developed with precision, ensuring contractors and subcontractors stay committed to fulfilling their obligations, therefore, upholding the quality and timeliness of the work. Income is registered when cash transactions occur, irrespective of a project’s actual progression. For instance, a contractor might receive a significant upfront payment, which under cash basis appears as high […]